Behind the Scenes of Cloudflare's Latest Options Trends

Investors with a lot of money to spend have taken a bearish stance on Cloudflare NET.

And retail traders should know.

We noticed this today when the trades showed up on publicly available options history that we track here at Benzinga.

Whether these are institutions or just wealthy individuals, we don't know. But when something this big happens with NET, it often means somebody knows something is about to happen.

So how do we know what these investors just did?

Today, Benzinga's options scanner spotted 23 uncommon options trades for Cloudflare.

This isn't normal.

The overall sentiment of these big-money traders is split between 26% bullish and 52%, bearish.

Out of all of the special options we uncovered, 6 are puts, for a total amount of $294,860, and 17 are calls, for a total amount of $5,082,670.

Projected Price Targets

Analyzing the Volume and Open Interest in these contracts, it seems that the big players have been eyeing a price window from $50.0 to $155.0 for Cloudflare during the past quarter.

Volume & Open Interest Trends

In terms of liquidity and interest, the mean open interest for Cloudflare options trades today is 1184.6 with a total volume of 16,887.00.

In the following chart, we are able to follow the development of volume and open interest of call and put options for Cloudflare's big money trades within a strike price range of $50.0 to $155.0 over the last 30 days.

Cloudflare 30-Day Option Volume & Interest Snapshot

Biggest Options Spotted:

About Cloudflare

Cloudflare is a software company based in San Francisco, California, that offers security and web performance offerings by utilizing a distributed, serverless content delivery network, or CDN. The firm's edge computing platform, Workers, leverages this network by providing clients the ability to deploy, and execute code without maintaining servers.

Following our analysis of the options activities associated with Cloudflare, we pivot to a closer look at the company's own performance.

Current Position of Cloudflare

• Trading volume stands at 1,232,977, with NET's price up by 3.57%, positioned at $105.76.
• RSI indicators show the stock to be may be approaching oversold.
• Earnings announcement expected in 16 days.

Professional Analyst Ratings for Cloudflare

Over the past month, 3 industry analysts have shared their insights on this stock, proposing an average target price of $138.67.

Turn $1000 into $1270 in just 20 days?

20-year pro options trader reveals his one-line chart technique that shows when to buy and sell. Copy his trades, which have had averaged a 27% profit every 20 days. Click here for access. * Showing optimism, an analyst from B of A Securities upgrades its rating to Buy with a revised price target of $160. * An analyst from Morgan Stanley persists with their Overweight rating on Cloudflare, maintaining a target price of $144. * Maintaining their stance, an analyst from Piper Sandler continues to hold a Neutral rating for Cloudflare, targeting a price of $112.

Options are a riskier asset compared to just trading the stock, but they have higher profit potential. Serious options traders manage this risk by educating themselves daily, scaling in and out of trades, following more than one indicator, and following the markets closely.

If you want to stay updated on the latest options trades for Cloudflare, Benzinga Pro gives you real-time options trades alerts.